West Point Gold (WPG.V) has announced the assay results from six Reverse Circulation drill holes that were completed on the Black Dyke prospect, part of the Gold Chain project. All five shallow holes (a total of 603 meters of drilling was completed in those five holes) encountered anomalous gold mineralization with 16.8 meters of 0.9 g/t gold and 7.6 meters containing 2.22 g/t gold as eyecatchers. As the table below shows, two holes did not encounter anything significant, but still contained anomalous values.
Although the attention of course deservedly goes towards Tyro and Tyro NE, where the upcoming maiden resource estimate should underpin the current valuation of the company, Black Dyke is shaping up to potentially become an interesting satellite deposit. Should West Point Gold go ahead and develop Tyro (assuming a positive economic study), the hurdle to reach critical mass at Black Dyke should be relatively low as the mineralized rock could just be shipped to a central processing facility.
Drilling at Gold Chain has now been completed (and will likely restart next month), and the upcoming maiden resource calculation will be the next catalyst. As a reminder, the company has an official exploration target of 19.5-31.2 million tonnes grading 2 to 3 g/t gold, translating to an overall range of 1.25 to 3 million ounces of gold.
Disclosure: The author has a long position in West Point Gold. West Point Gold is a sponsor of the website. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
